A classic beauty draped along the ancient Danube River, Budapest is a vibrant capital city and one of Europe’s most populous. It’s a global center of art, architecture, fashion, politics and commerce that attracts an international crowd. The city is marked by 23 districts, with District V at the business, political and historical center of Budapest.
"District V makes up the heart of Budapest, the political, financial, commercial and tourist center of Hungary," said Kornélia Pásztor of Engel & Völkers Budapest. "The name of the district is Belváros-Lipótváros (Inner City-Leopold Town), referring to the two historical neighborhoods located in the district. Leopold Town was established in the early 19th century, and became the political and financial center of Hungary in the early 20th century when the Hungarian Parliament was built."
"The District V neighborhood is a totally different market than the rest of the city," said Daniel Toth, co-founder of Matthew & Daniel’s Realty Budapest. "There is a limited number of homes, and there are no empty plots available where you can build new buildings."
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Boundaries
Mr. Toth desc District V as being marked on the north by Szent István Boulevard and to the the south by Kossuth Lajos Street. The eastern boundaries are Bajcsy Zsilinszky Street, Nagymező Street, Király Street and Károly Boulevard, and the west boundary is the Danube River.
Locals define their city by its districts. Ms. Pásztor said that the District V’s neighbors, clockwise from the north, are: District XIII (Újlipótváros/New Leopold Town); District VI (Terézváros/Theresa Town); District VII (Erzsébetváros/ Elizabeth Town); District VIII (Józsefváros/Joseph Town) and District IX (Ferencváros/Francis Town).
Price range
There are only condominiums and apartments, no single-family houses, in the area.
"The average square meter price ranges from HUF 1 million (US$3,950) without a Danube panorama, to HUF 3 million (US$11,850) with a Danube panorama or square view like Szent Istán Square, Kossuth Lajos Square, Liberty Square in a famous, unique building like Biarritz House," Mr. Toth said. "A 100-square-meter, three-bedroom apartment is at least 100 million HUF (US$395,000)."
Demand continues to grow among both international and local buyers—expats, international residents, diplomatic residents and upper-class locals. "Therefore this neighborhood shows 60% to 70% higher prices than the next most expensive one," Mr. Toth said.
He added that the higher asking prices reflect updated buildings, and renovated apartments, in the district’s most desirable areas.
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Housing stock
Ms. Pásztor said the residential architecture style, ranging from classical to Bauhaus, mirrors the prominent institutions in the district. Influential buildings of note include the classical Hungarian National Museum and Chain Bridge; the neoclassical Vigadó Concert Hall and Great Synagogue; the neo-Gothic Parliament building; and the Museum of Applied Arts and Gresham Palace, both of which are in Art Nouveau style.
"The majority of buildings are condominiums built in late 1800s and the beginning of the 1900s," she said. "There are small and ‘cheap’ apartments and huge luxurious ones as well. The condition of the various buildings also differ greatly with reconstruction still going on throughout the area," Ms. Pásztor added.
What makes it unique
The area is the "historical city center with most of the tourist attractions, including the Opera House, Gresham Palace, Hungarian Academy of Sciences, Hungarian Parliament Building, St. Stephen's Basilica, Chain Bridge and Franz Liszt Academy of Music," Mr. Toth said.
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The area is dotted with UNESCO World Heritage sites and international embassies. There are also "beautiful and well-maintained public spaces, such as Liberty Square, Kossuth Lajos Square, Vörösmarty Square, and Váci, a pedestrian-only street," Mr. Toth said.
St Stephen's Basilica in Budapest
_ultraforma_ / Getty ImagesLuxury amenities
It is a classic downtown area full of tourist hotspots, attractions and luxury hotels: the Four Seasons Hotel, Kempinski, and the Ritz-Carlton. Fine-dining restaurants and café include Nobu, Onyx for upscale Hungarian, Tom George Italiano, contemporary cuisine at Kollázs Brasserie & Bar and the grand Hungarian bistro Café Gerbeaud, Ms. Pásztor said.
"Váci Street, the city’s fashion boulevard, has countless shops, covering the world of fast fashion and expensive labels as well," she added. Boutiques include Alberto Guardiani shoes, Louis Vuitton, Gucci, Dolce & Gabbana, Burberry, and popular Hungarian brand Nanushka.
Who lives there now
"The mix of people living here is very colorful," Ms. Pásztor said. "This was always a prestigious area, so you can find many private offices of lawyers and doctors. Over the last few years, many foreign investors have bought apartments here with a view to renting them out in the long term and even on a short-term basis."
Mr. Toth added that, "you can live here without knowing a word in Hungarian. International real estate investors from China, Russia, Italy, Spain, Germany the United States, as well as international diplomats reside here. Budapest has also became a famous film location for many recent Hollywood movies."
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Notable residents
Past notable residents include photographer Robert Capa; Nobel Prize-winning scientist in physics Dénes Gábor; actress Katalin Karády and poet Sándor Petőfi.
Race car driver Josh Cartu and film producer Andy Vajna currently reside here.
Outlook
"All properties in the district are highly sought-after, so any home coming onto market can be sold in a relatively short period of time," Ms. Pásztor said. "Even the parking—which is a great challenge—does not seem to be intimidating the buyers. The problem is well known, and a garage is therefore a real treasure (and a very expensive acquisition)."
Buying a property in District V will always be a safe investment, she said, with excellent resale potential because the demand is much higher (more and more international buyers) than the supply (no new developments). "It is not rare that we’ll list and sell an apartment on the same day, but if the property is in good condition won’t be on the market more than two to three months," Ms. Pásztor said.
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In Mr. Toth’s opinion it’s a favorable time to buy. "Budapest is a great city to live in or just have a holiday home in," he said. "Tourism is booming, the prices are still lower than in the big European cities, and there is still room for growth."